Nokia Finally Completes the Sale of its Handsets Division to Microsoft
Published on: 25th Apr 2014
By: Ian Mansfield
Nokia has as expected completed the slightly delayed sale of its mobile phones division to Microsoft.
The transaction, which also includes an agreement to license patents to Microsoft, was originally announced on September 3, 2013.
The estimate of the adjustments made for net working capital and cash earnings was slightly positive for Nokia, and the company also expects the total transaction price to be slightly higher than the earlier-announced EUR 5.44 billion.
Nokia also confirmed that its factory in Chennai, India, which has been siezed by the tax authorities has not been included in the deal. Nokia and Microsoft have entered into a service agreement whereby Nokia would produce mobile devices for Microsoft.
In Korea, Nokia and Microsoft agreed to exclude the Masan facility from the scope of the transaction. Nokia will now take steps to close the factory, which employs approximately 200 people.
As previously announced, the following Nokia leaders have stepped down from the Nokia Leadership Team and transferred to Microsoft: Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber. Until further notice, Nokia's interim governance model announced on September 3, 2013 is in place.
Nokia plans to cover in further detail aspects of the closing of the transaction in conjunction with its first quarter 2014 results announcement next Tuesday.